THE IRISH BEER MARKET
THE IRISH BEER MARKET The Irish Brewers Association (IBA) Beer Market Report highlights the role of the brewing sector in Ireland s economy. Beer comfortably remains Ireland s favourite alcohol beverage accounting for just under 45% market share of all alcohol consumed in. In, Ireland s economy experienced rapid economic growth at 7.8% and cemented its place as the fastest growing economy in the European Union for a fourth consecutive year. In employment grew by 2.9% and is now approaching peak levels. In many sectors it has exceeded 2007 levels. Added to that, disposable income in Ireland rose by over 5% in and consumer price inflation remained flat. Despite unprecedented purchasing power for consumers (when borrowing is excluded), the per capita rate of alcohol consumption fell by 1.4% in. Beer consumption per capita decreased by 2%. This is in line with an overall trend that people in Ireland are drinking much less with the average per adult consumption rate falling by 23% since 2001. In more positive news beer production has increased in by 4%.» THE IBA CALLS ON THE GOVERNMENT TO HELP THE INDUSTRY BY REDUCING EXCISE ON BEER AND TEMPERING SOME OF THE REGRESSIVE MEASURES ON LABELLING AND ADVERTISING IN THE FORTHCOMING PUBLIC HEALTH (ALCOHOL) BILL. 2
Beer exports, by volume, rose marginally by 0.2% in and were valued at 273 million in making Ireland the 8th largest beer exporter in Europe. The value of exports is down marginally from 280 million in, but still up significantly from 228 million in 2014. The most popular destination for Ireland s beer exports is the United Kingdom, followed by the United States. In terms of the market share of beer variants, ale saw the biggest growth with a jump from 6.1% to 6.7% market share in. Lager s market share is steady at 61%, up by 0.1% from the previous year. Stout s market share was 32.3% in, down from 33.0% in. Ireland s on-trade beer sales continue to outperform off-trade sales by 64.8% to 35.2%. Although the on-trade percentage is down from 66.3% in, it is worth noting that no other country in the European Union has a higher percentage of on-trade versus offtrade beer sales which highlights the continued strength of Ireland s hospitality sector. The craft beer sector continues to grow with production going from 86,000 Hectolitres in 2014 to an estimated 238,000 Hectolitres in. That represents a 177% production growth in 4 years. It is estimated that there are 100 microbreweries with 72 of them being full production breweries, with 69% of them exporting to the UK, the United States, Italy and other markets. The brewing sector continues to make a significant contribution to the exchequer both directly and indirectly. In beer excise contributed just under 424 million to the exchequer, a decrease from 430 million in. The beer excise receipts have increased by 116 million from 2012 due to a 42% excise duty increase from 2012 to 2013. While it is welcome that excise duty has not increased since then, consumers still endure the second most expensive prices for alcohol in the European Union. Beer is a significant economic and cultural asset in Ireland. The IBA calls on the Government to help the industry by reducing excise on beer and tempering some of the regressive measures on labelling and advertising in the forthcoming Public Health (Alcohol) Bill. Jonathan McDade Head of the Irish Brewers Association 3
TOTAL PRODUCTION (1,000HL) TOTAL EMPLOYMENT TOTAL CONSUMPTION (1,000HL) 8,019 7,680 Source: IBA members 1,371 Source: IBA members 1,064 4,576 Source: Revenue Commissioners 4,479 PER CAPITA CONSUMPTION (LITRES PER CAPITA) % EXPORTS Source: Total production domenstic consumption 80.7 40% 44% 79.1 Source: Calculation based on consumption but as 5%ABV (pan-european benchmark) and CSO population figure of Census of 4,761,865 value 280m EXPORT VALUE Source: EuroStat value 273m 4
CRAFT BEER MARKET 2014 2015 Production output of microbreweries 86,000HL 134,000HL 176,000HL 238,000 HL Estimate 2014 2015 Production % Market Share 1.2% 1.7% 2.3% 2.9% Estimate Source: Bord Bia Report: Craft Beer & Microbreweries in Ireland SALES CHANNEL 33.7% 35.2% l On-Trade l Off-Trade Source: IBA members 66.3% 64.8% VARIATIONS 6.1% 6.7% l Lager l Stout l Ale Source: IBA members 33.0% 32.3% 60.9% 61.0% 5
ALCOHOL CONSUMPTION BY CATEGORY MIX 7.5% 7.7% 19.1% 19.8% 45.8% 44.8% Source: Revenue Commissioners EXCISE RECEIPTS l Beer l Wine l Spirits l Cider l Beer l Wine l Spirits l Cider 27.6% 27.7% 338m 59m 380m 1,207m 430m 36% 353m 61m 382m 1,220m 424m 35% EXCISE DUTY ON A PINT Lager % paid in tax 30% VAT 84c Excise 54c VAT 91c Excise 55c Stout % paid in tax 31% Source: Revenue Commissioners 6 Based on the CSO average price of stout and lager in May 2018
PAN EUROPEAN BEER PER CAPITA CONSUMPTION (LITRES OF BEER AT 5 PERCENT OF ABV) EUROPEAN BEER EXCISE RATES (IN EURO PER HECTOLITRE OF PURE ALCOHOL) Rank Country Per capita consumption 1 Czech Republic 143 2 Germany 104 3 Austria 103 4 Poland 98 5 Lithuania 88 6 Estonia 80 7 Romania 80 8 Slovenia 79 9 Ireland 79 10 Latvia 78 11 Finland 77 12 Bulgaria 76 13 Croatia 75 14 Luxembourg 74 15 Slovakia 73 16 Netherlands 69 17 Belgium 68 18 United Kingdom 67 19 Denmark 62 20 Hungary 62 21 Cyprus 55 22 Malta 53 23 Sweden 48 24 Portugal 47 25 Spain 46 26 France 33 27 Italy 31 28 Greece N/A Rank Country HL Excise Rate 1 Finland 153.84 2 Ireland 108.24 3 United Kingdom 100.51 4 Sweden 97.32 5 Estonia 74.50 6 Greece 60.00 7 Slovenia 58.08 8 Netherlands 37.96 9 Italy 36.24 10 Denmark 36.13 11 France 35.57 12 Lithuania 34.13 13 Cyprus 28.80 14 Croatia 25.41 15 Hungary 24.84 16 Belgium 24.05 17 Austria 24.00 18 Malta 23.16 19 Poland 22.24 20 Latvia 21.60 21 Portugal 20.60 22 Slovakia 17.22 23 Czech Republic 15.03 24 Spain 9.96 25 Luxembourg 9.52 26 Germany 9.44 27 Bulgaria 9.20 28 Romania 8.57 Source: Brewers of Europe () and IBA () Rates at December Source: Brewers of Europe 7
EXPORT DESTINATIONS USA 58m Canada 14m UK 111m France 19m Germany 14m Rank Country Value m 1 United Kingdom 111 2 United States 58 3 France 19 4 Canada 14 5 Germany 14 Source: CSO Alcohol Beverage Federation of Ireland 84/86 Lower Baggot Street Dublin 2 T: + 353 1 605 1500 E: info@abfi.ie W: www.abfi.ie @abfi_ireland